Merchant accounts are needed if you are an entrepreneur who wishes to transcend beyond the constricting forms of payment our society provides today. If what you want is maximum exposure while offering the best customer service, you need to be able to accept credit cards and other forms of payment. In this highly technological world, you will not flourish if you do not keep your options open. If you a have a bustling business and you intend to think out of the box with payment options to widen your horizon, then what you need are merchant accounts.
Access and Authorization
When you set up merchant accounts, agreements are made between a merchant bank, a retailer, and a payment processor for the settlement of your debit or credit card transactions. These credit card transactions are sent electronically to your merchant processing banks for the proper authorization. Your business can access your customer’s credit cards through a credit card terminal, which uploads their electronic funds directly to your merchant bank so your customers will be able to pay for goods or services supplied without using money in the form of cash.
Setting up Your Merchant Account
In order to set up merchant accounts, you need to open a business checking account. Find a financial institution that would best suit your needs and set up a checking account with them. Get yourself an Employer Identification Number or a Federal Tax ID from the IRS and have a physical store address. The physical storefront should have a mailing address directly equivalent to the address on your business check, so check these promptly.
You also need a good checkout system for merchant accounts, and list what payments you are willing to accept. There are a number of different payment options available, so research on the Internet for the best ones possible. To apply for merchant accounts, you need to go to the physical site of your financial institution. Take into consideration that the set-up process will be easier and cheaper if you opened your credit card merchant account at the same bank or financial institution you used for your business. Once you are in the physical site, ask for a merchant accounts application which you then need to fill out. Be sure to have all your personal information with you before you apply to save you the hassle of going back and forth. Before physically going to the site, research what the financial institution needs from you to create your merchant accounts. Do you need your driver’s license? Are they going to ask you for licenses or permits related to your business? Do you need to bring your financial statements? Collect all the papers you need.
The creation of merchant accounts requires you to give out your business information to the bank. They may need your routing and account number for important purposes, so do not withhold information if they need it. A copy of your Articles of Incorporation, the primary rules governing the management of a business or corporation, may be required for setting up merchant accounts. Remember that there are fees associated with setting up merchant accounts. The fees depend on the particular financial institution you choose. There may be two fees included with setting up merchant accounts the fixed fees and the variable fees. The fixed fees are the start-up or the primary fees of your credit card merchant account, this will cover your application costs. The variable fees are the fees paid every month and may vary from time to time, and its cost is directly proportional to the number of times you use the service. Congratulate yourself. You now have a fully functional credit card merchant account.
Expect more income to enter your business after setting up your credit card merchant account. Merchant accounts are extremely useful for those who want to expand their horizons and reach more people.